Our view of Corporate Social Responsibility (CSR) encompasses community development, philanthropy, and the identification and mitigation of social and sustainable development risks posed by business operations.
Sustainable Development
We are guided by the Sustainable Development Goals (SDGs), which replaced the Millennium Development Goals (MDGs) in September 2015. The eight millennium development goals were established in 2000 following the Millennium Summit of the United Nations, and were adopted by all 189 United Nations member states at the time. The new Sustainable Development agenda will drive the achievement of global sustainable development, and also drives our areas of focus:
- Poverty reduction and sustainable development in Africa
- Challenges of social inclusion: gender, inequalities and human rights
- Global governance and norms for sustainable development
- Redefining the role of business for sustainable development
Good Governance
We believe that good governance in both public and private institutions and national governance is critical to sustainable development. Sustained development of either a commercial venture or a country becomes dire when there is an absence of proper governance – this leads to an absence of controls and massive corruption which breaks down systems and further entrenches poverty.
We work with governments and the private sector to develop appropriate frameworks for good governance and help monitor and report on implementation.
“Poor corporate governance has ruined companies, resulted in directors being sent to jail, destroyed a global accounting firm and threatened companies and governments.” - The Economist (Essentials for Board Directors)
Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance. The board of directors is typically central to corporate governance. Its relationship to the other primary participants, typically shareholders and management, is critical. Additional participants include employees, customers, suppliers, and creditors. The corporate governance framework also depends on the legal, regulatory, institutional and ethical environment of the community. Whereas the 20th century might be viewed as the age of management, the early 21st century is predicted to be more focused on governance. Both terms address control of corporations but governance has always required an examination of underlying purpose and legitimacy. – James McRitchie, 8/1999 IMF (http://www.imf.org/external/np/exr/facts/gov.htm)
Governance is a broad concept covering all aspects of the way a country is governed, including its economic policies and regulatory framework, as well as adherence to the rule of law. Corruption--the abuse of public authority or trust for private benefit--is closely linked: a poor governance environment offers greater incentives and more opportunities for corruption. Corruption undermines the public’s trust in its government. It also threatens market integrity, distorts competition, and endangers economic development. Since poor governance is clearly detrimental to economic activity and welfare, the IMF adopted in 1997 a policy on how to address economic governance, embodied in the Guidance Note “The Role of the IMF in Governance Issues.”